Topic: Why is crypto going up after the news of being in a recession? - page 3. (Read 325 times)

The market has not shown any bullish sign, just small upward movements cannot be described as being bullish. It is firmly still in the winter season, nothing has changed from my point of view.
Bitcoin is an anti-inflationary currency in itself, i don't feel it is supposed to hedge dollar or fiat devaluation. If you buy bitcoin, it is btc that is deflationary or inflation resistant because of its fixed supply or halving after every 210,000 mined blocks and not the dollar, because if you want to look at your money in terms of dollars/fiat movement or you plan to convert it, it is still affected by inflation, what i mean is whichever way any of the two different currencies move doesn't affect or can hedge the other as they are extrinsic.
If you are using DCA to buy bitcoin, it is great, but if your "favorite projects" are many short term, shit and scam coin altcoins, you may want to recheck that and buy only bitcoin for crypto investment, and other extrinsic assets for diversification.

Satoshi created Bitcoin to lessen our reliance on banks (particularly central banks), whose reckless lending practices led to the collapse of the real estate market. A great account of the housing market crisis was produced by the National Council for the Social Studies. The market had enormous leverage, investors disregarded fundamentals in pursuit of short-term gains, and the Federal Reserve changed its interest rate strategy. Cryptocurrencies: Can it withstand a downturn?

Let's look at Bear cases and Bull cases:

Cryptocurrency markets have little control over external economic factors. Recently, the Federal Reserve raised interest rates in an effort to promote the economy and control inflation. Growth in the economy and inflation are balanced by the Federal Reserve. More money is available in the economy thanks to lower interest rates, but inflation rises. Higher interest rates increase the cost of borrowing for businesses and consumers, which lowers consumption. Rate increases could start a recession. In a downturn, people could have to liquidate their cryptocurrency holdings to cover living expenses.

The potential of cryptocurrencies is essential for surviving a recession. Cryptocurrency is no longer just for peer-to-peer transactions. The current use cases for cryptocurrencies include DeFi, NFTs as art, gaming, and Polygon Nightfall. While many more use cases have been put up, they have not been generally embraced. The use of cryptocurrency for decentralized storage, digital identities, and housing documents has immense potential. Numerous businesses have entered the bitcoin sector, lowering the likelihood of a collapse.

https://www.nftically.com/blog/can-cryptocurrency-survive-a-recession-nftically/

Most markets and sectors are harmed by recessions. The legal ambiguity and youth of the bitcoin industry may make it more vulnerable than other sectors. The underlying technology and its use cases will improve businesses' and individuals' lives. It's difficult to see all of this disappearing because of a bad economy.

Current narrative is that this is just temporary and that we are going under 20k again as we need the real capitulation before we can move on and I tend to agree with that as i don't think that we are out of the woods yet. Then again, because so many expect that scenario, maybe we won;t see it and instead it goes sideways for longer period of time before it starts pumping again.

Either way this is a good entry price and since I have no intentions of trying to time the market, I am already buying BTC.

The crypto market definitely behaving in  mysterious ways lately. It seems like we turn from bullish to bearish and vice versa  on the daily.

I find it a bit odd that the market is pumping on the news of a recession.

Is Bitcoin and crypto proving it really is a hedge against the devaluing of the dollar, or is the fact it was only a 75bp hike until September that maybe caused the case for optimism?

Do you guys Believe in this pump or is it just temporary until another leg down?
I personally am not sure so I'm just slowly  DCAing  in to my favourite projects.